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20 The Investor

As for the level of foreign direct investment, investment expenditures, respectively. This
Kuwait Direct Investment Promotion is important due to its close connection
Authority (KDIPA) is active. According to with strengthening economic growth,
available data, the total value of licensed providing job opportunities and boosting
foreign investments last year reached around non-oil exports. As for the revenues side,
KD 403 million, including investments by the government is considering many
six well-known international companies. proposals to increase the contribution of
On the other hand, the mechanism of the non-oil revenues.
national fund for National Fund for Small
and Medium Enterprise Development is It is worth mentioning, in this respect to the
currently under a comprehensive review latest Moody’s report, where Kuwait has
that aims to activate its role in encouraging maintained its sovereign rating at Aa2, and
entrepreneurs and diversifying the base of upgrading the future outlook from negative
projects financed by the fund. to stable. This development reflects, among
other things, the fiscal creditworthiness in
the medium range, and the well-defined
strong performance of the public finance.
I have to mention, here, as well, that the
Ministry of Finance is in the process of
launching the medium-term budget, i.e. the
three-year budget, and the establishment of
a special unit of public debt.

Among the most important achievements
in reforming the budget are: using a fiscal
ceiling for current expenditure, enhancing
investment expenditure, reviewing
allowances of public authorities, limiting
the establishment of new authorities,
and planning the merging of government
authorities and departments serving similar
purposes.

The measures of rationalizing and
supporting current and investment
expenditures respectively, will contribute
to enhanced demand for commodities and
service. This, in return, will strengthen the
attraction of both domestic and foreign
investment, and, hence, raising the rate of
non-oil growth. Rationalizing expenditure
will, also, contribute to reducing the budget
deficit and directing savings towards more
feasible investments.
THE INVESTOR: The government initiated
several budget reforms due to the drop in THE INVESTOR: The government strongly
global oil prices. What is the effect of this supports the model of partnership between
on Kuwait’s investment atmosphere as far as public and private sectors (PPP), with the
local and foreign investors are concerned? existence of several new mega projects
that are being built or are in the plans to
AL-SALEH: The government has been taking agree with the PPP framework. What are
many measures aiming at reforming public the expectations in the short and medium
funds and the public budget system at the term for this model as far as its impact on
level of rationalizing and supporting current Kuwait’s economy?

Issue 1 October 2017